Fed’s Kocherlakota: Fed May Not Be Providing Enough Stimulus

From the WSJ Real Time Economics

Observing that most Fed policy makers expect inflation to be at or under the Fed’s 2% target for some time to come, Mr. Kocherlakota said he believes the central bank has more room to act. “Given how high unemployment is expected to remain over the next few years, these inflation forecasts suggest that monetary policy is, if anything, too tight, not too easy,” the policy maker said.

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It has been common for dovish Fed officials to advocate for more stimulus, but the disturbing thing about this is that Kocherlakota had been considered an inflation hawk. He was one of three FOMC members in 2011 who voted against the mid-2013 low-rate guidance and Operation Twist.